Hudbay Minerals reported a solid QQ1 2025 with revenue of $594.9 million, up 13.3% year over year and 1.7% sequentially. Gross profit of $231.3 million yielded a gross margin of 38.9%, as higher aggregate cost of revenue pressure compressed margins despite robust operating performance. EBITDA stood at $302.4 million, yielding an EBITDA margin of 50.8% and contributing to operating income of $185.7 million (operating margin 31.2%). Net income reached $100.4 million, driving basic EPS of $0.25 (diluted $0.25), up meaningfully from prior-year levels and with notable year-over-year gains in profitability metrics.
From a liquidity and capital allocation perspective, Hudbay maintained a conservative balance sheet with $562.6 million in cash and cash equivalents and net debt of $621.6 million. Total debt stood at $1.184 billion against $2.653 billion of equity, producing a debt-to-capitalization ratio of 0.309 and a debt ratio of 0.215. The company generated $124.8 million in operating cash flow and $93.0 million in capital expenditures, yielding free cash flow of $31.8 million for the quarter. The working-capital posture remains healthy (current ratio 2.32), underscoring financial resilience during ongoing commodity cycles.
Overall, QQ1 2025 demonstrates Hudbay’s ability to convert commodity exposure and operating leverage into tangible earnings and cash flow, while maintaining solid liquidity. The combination of diversified metals (copper, gold, silver, zinc, molybdenum), geographic footprint, and prudent leverage supports an evolving investment thesis, though margin dynamics and sensitivity to commodity prices warrant close monitoring going forward.